Reports of people being humiliated, harassed, and even subjected to violence by loan sharks are rampant. Law enforcement often sides with the lenders, and the psychological toll on victims is immense, leading many to depression and, tragically, suicide. A recent case from Jacobabad highlights the grim reality, where a technical college lecturer, driven to despair by relentless harassment from loan sharks, took his own life. In a letter, he expressed that he would rather choose death than continue living a life of humiliation.
Despite the clear illegality of loan sharking, the business continues unchecked. Government officials and institutions responsible for protecting citizens have remained largely inactive. Civil servants, in particular, are prime targets for these sharks. In a disturbing pattern, loan sharks demand blank signed checks and ATM cards from government employees, using these to seize their salaries, deducting inflated interest payments and leaving the borrowers with little to live on. This entrapment echoes the plight of sharecroppers who could never fully repay the debts imposed by their landlords.
The complicity of banks and local law enforcement enables this illegal industry to flourish. Loan sharks hold on to signed blank checks as leverage, and the police are quick to register fraud cases against those who default, further victimizing the borrowers. While there is legal regulation for lending practices, enforcement remains non-existent.
The loan shark mafia has made life unbearable for many in Sindh, driving people to the brink of suicide. The government’s failure to take action against this well-organized illegal business has left the victims with no recourse. The banking system’s role in facilitating these illegal transactions must also be scrutinized, especially when multiple checks belonging to civil servants are cashed at once. The Sindh government must take immediate steps to clamp down on this predatory practice and protect those trapped in its web.
